Schumer asks credit agencies for alerts

Schumer wants agencies to set up alerts for consumers

By Eric Anderson

Published 7:59 pm, Monday, June 22, 2015

U.S. Sen. Chuck Schumer on Monday asked the three major credit agencies, Equifax, Experian and Transunion, to establish voluntarily credit inquiry alerts that would immediately notify consumers when their credit records were requested.

The requests typically occur when new accounts are opened. When they are the result of data breaches or hacked computers, the victims' credit ratings can be damaged without their knowledge.

An instant alert, Schumer said, would give the consumer a chance to freeze credit records to halt fraudulent activity.

He asked the heads of the three credit agencies for their voluntary compliance.

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"Individuals know when they have authorized a query of their credit file, for example when they apply for a new loan or to rent an apartment," Schumer wrote. "Therefore, they will also know if a query of their file is not authorized, and therefore a likely sign of criminal activity.

"Such notification will allow a consumer to freeze his credit and put a halt to the problematic behavior before it is too late," Schumer wrote.

While a spokesman for TransUnion said he hadn't seen Schumer's letter, he said consumers could take steps to proactively protect themselves.

"First, consumers can request placement of initial or extended fraud alerts on their credit reports at no cost," said spokesman Clifton M. O'Neal. "Lenders must then take additional steps to identify the consumer before granting credit.

"Second, state laws allow a consumer in any state to freeze his or her credit report and CDIA (Consumer Data Industry Association) members put those freezes in place at the request of the consumer," O'Neal said. "These file freezes range from free to a nominal cost depending on the state."

Schumer, in his letter, told the heads of the three credit agencies that if they didn't comply he would work with regulators at the Consumer Financial Protection Bureau or pursue federal legislation if necessary.